Foreign investors continued to pull money out of Asian equities in July, marking the ninth consecutive month of net selling across seven major Asian markets. Investors sold a net $25.5 billion worth of stocks, with the sell-off concentrated in technology-heavy markets such as Taiwan and South Korea.

Taiwan accounted for nearly $23 billion of the July outflows, while South Korea saw another $6.3 billion leave its equity market. Concerns over AI-related spending, cash burn, semiconductor demand and the sustainability of corporate growth have weighed on investor sentiment.

Amid the broader regional sell-off, India stood out by attracting $2.1 billion in foreign inflows in July. Thailand also recorded strong inflows, while Indonesia and the Philippines saw smaller gains.

Asian Markets Face $25.5 Billion Foreign Outflow as Taiwan, South Korea Lead Tech Sell-Off

Asian stock markets saw sharp declines on Friday as a global selloff in technology shares intensified, resulting in South Korea's main stock index, KOSPI, falling over 8 per cent, forcing authorities to temporarily halt trading through a circuit breaker mechanism. Japan's Nikkei 225 index also fell nearly 5 per cent amid fears of recent surge in the artificial intelligence-related stocks has run too far and too fast. In addition, Hong Kong's Hang Seng also declined 2.4 per cent, the blue-chip CSI300 index of China fell by 2.9 per cent, and the Shanghai Composite lost over 2 per cent. Friday's losses came after another broad selloff across Asian markets earlier this week. The MSCI Asia-Pacific index, excluding Japan, declined 3.8 per cent, marking the biggest weekly decline in more than a year. This followed a strong rally in regional markets earlier in the quarter.<h3>Why the sudden fall of Asian stock markets?</h3>The development unfolded after American technology giant Apple announced to jack up prices of some of its product lines by as much as 20 per cent. It raised prices across its iPad and MacBook, citing a rise in chip costs due to the recent global AI surge. Apple has also increased prices across TVs and HomePods. Additionally, the Asian market tanked as the South Korean government announced to tax unrealised gains on equities, which weighed on sentiment for AI and chip-related stocks. Following the announcement on Thursday, it triggered panic across markets, prompting investors to opt to reduce their exposures in AI and tech stocks. The Nasdaq Composite index in the US fell by 0.5 per cent overnight. Similarly, Apple's shares declined by more than 6 per cent. Competitor Dell declined 5.5 per cent, and the rest of the other big tech stocks in the US also ended lower. In Asia, shares of SK Hynix tumbled more than 8 per cent on Friday, while TSMC and Samsung recorded losses between 2 and 5 per cent.&nbsp;Also read: <a href="https://www.wionews.com/technology/ai-is-making-xbox-consoles-more-expensive-here-s-why-microsoft-raised-prices-1782460762910">AI is making Xbox consoles more expensive. Here's why Microsoft raised prices</a><h3>Shortages of graphics and memory chips</h3>The decline comes as companies worldwide continue to grapple with rising costs and shortages of graphics and memory chips. The global semiconductor industry is largely dominated by major players such as SK Hynix, Samsung and Micron Technology. These manufacturers have increasingly prioritised the production of high-bandwidth memory (HBM) chips used in AI data centres because they generate higher profits. As a result, production capacity for chips commonly used in consumer electronics—including smartphones, personal computers, laptops and other devices—has been significantly reduced. The shift has contributed to a shortage of consumer-grade chips, driving up prices across the electronics sector. The situation, often referred to as the "RAMageddon" shortage, has prompted companies such as HP Inc., Dell Technologies and ASUS to increase prices. Shortly after Apple announced price hikes on Monday, gaming giant Xbox also revealed price increases of up to 25 per cent, marking its second such move within a year. Industry experts also underscored that Asian stock markets have come under intense pressure in recent months due to geopolitical tensions, soaring oil prices, and growing competition from China, along with concerns over artificial intelligence (AI) valuations. Reacting to the recent development in Asia's overall stock market, Harsha Vardhana VM, Founder and CEO of Atom Financial Services Group, said the current selloff is driven not only by a single factor but several challenges hitting the markets simultaneously. "Oil is probably the most straightforward piece. Once the US-Iran conflict pushed crude past $100 a barrel, the damage spread quickly and widely. South Korea, Japan, and India do not produce enough oil domestically to absorb that kind of price move without feeling it. Companies saw their costs go up. Households started pulling back on spending. And then the Federal Reserve, watching energy keep inflation elevated, found itself with fewer reasons to cut rates. A cautious Fed means a stronger dollar, and a stronger dollar is generally bad news for Asian currencies and the foreign investors who hold Asian assets. So what started as a geopolitical shock in the Middle East ended up sitting in the profit margins of a Korean steelmaker or an Indian airline. That is how connected these things are," Harsha Vardhana VM said.&nbsp;WATCH: https://www.wionews.com/videos/france-intercepts-suspected-russian-shadow-fleet-tanker-at-sea-1782474149108/embed<h3>AI rally loses momentum</h3>The technology sector, which powered most of the market of Asia gains in 2025, has also become a source of concern. South Korea and Taiwan benefited enormously from the booming demand for semiconductors and AI-related technologies. However, investors are now having several questions about whether stock prices accurately reflect company earnings. According to Vardhana, valuations in the semiconductor sector became increasingly disconnected from fundamentals. "The AI story is a bit more uncomfortable to tell, because it involves markets getting carried away with a genuinely real theme. South Korea and Taiwan had a spectacular 2025. The world wanted semiconductors, and these were the countries that made them. But at some point, the valuations stopped reflecting what companies were actually earning and started reflecting what investors hoped they would earn. When Broadcom came out in early June with AI chip revenue that fell short of expectations, it was not a disaster on its own. But it was enough to remind everyone that the earnings story had not quite caught up to the price story, and valuations were stretched too. In markets priced the way those were, that reminder tends to be expensive," he said. "Most of the coverage around the Asian selloff has focused on oil prices and chip stocks, and those are fair explanations as far as they go. But there is a bigger and more unsettling story sitting underneath all of it that is not getting the attention it deserves. For a long time, the Asian growth story rested on a fairly comfortable assumption. Countries like South Korea, Taiwan and Japan had built real advantages in industries the world depended on. What 2026 is starting to reveal is that some of that advantage was genuinely earned, and some of it was there simply because China had not yet decided to show up and compete for it," he added.<h3>China's growing competitive challenge</h3>Beyond short-term concerns over oil prices and technology stocks, Vardhana believes a more significant structural shift is taking place across Asia. For decades, countries such as South Korea, Taiwan and Japan built strong competitive advantages in sectors ranging from semiconductors and batteries to automobiles and shipbuilding. However, China is increasingly challenging that dominance. "What 2026 is starting to reveal is that some of that advantage was genuinely earned, and some of it was there simply because China had not yet decided to show up and compete for it. South Korea is the place where this is most stark. The country built its entire economic identity around a handful of industries. Semiconductors. Displays. Batteries. Automobiles. Shipbuilding. For decades, these were South Korean industries, and that was more or less taken for granted. Chinese firms have reportedly now overtaken South Korea in seven of those eight categories. Not nibbled away at the edges. Overtaken. And the money knew this before the headlines did. Foreign investors had been quietly selling out of Samsung for months before the big crash. &nbsp;The 12.2% single-day fall in the KOSPI in March was not a shock to anyone who had been paying attention. It was more like a conclusion that markets had been slowly writing for a while and finally signed off on," Vardhana said. He added that China's own equity markets have their problems; however, separate from the role of the Shanghai Composite on any given day, the competitive pressure that Chinese manufacturers are putting on the rest of the region is not a cyclical thing. Vardhana noted that it does not ease when sentiment improves or when a ceasefire stops, as it is a slow, structural reshaping of who makes what and at what price. That is the part of this story worth sitting with.<h3>What does it mean for India?</h3>India faces a different set of challenges. While the country has benefited from domestic growth drivers such as interest rate cuts, recovering consumption and government-led infrastructure spending, valuations remain demanding. Vardhana warned that Indian equities have little room for disappointment. "India is caught in the crossfire even though its problems are different in nature. The domestic fundamentals, rate cuts, a recovering consumption cycle, and a government capex push are still intact. But at a forward P/E of 23 times, there is no room for earnings to disappoint in the second half of the year. Clients with heavy exposure to global tech funds or IT-heavy portfolios should be looking at rebalancing toward domestic consumption and quality financials. Gold deserves a place in the allocation while oil and geopolitical risk remain elevated. And anyone waiting for FII flows to rescue Indian markets in the near term should probably plan around domestic conviction instead," he further said.

Industry experts highlighted that Asian stock markets have come under intense pressure in recent months due to geopolitical tensions, soaring oil prices, and growing competition from China, along with concerns over artificial intelligence (AI) valuations. 

Asian stock markets saw sharp declines on Friday as a global selloff in technology shares intensified, resulting in South Korea's main stock index, KOSPI, falling over 8 per cent, forcing authorities to temporarily halt trading through a circuit breaker mechanism. Japan's Nikkei 225 index also fell nearly 5 per cent amid fears of recent surge in the artificial intelligence-related stocks has run too far and too fast. In addition, Hong Kong's Hang Seng also declined 2.4 per cent, the blue-chip CSI300 index of China fell by 2.9 per cent, and the Shanghai Composite lost over 2 per cent. Friday's losses came after another broad selloff across Asian markets earlier this week. The MSCI Asia-Pacific index, excluding Japan, declined 3.8 per cent, marking the biggest weekly decline in more than a year. This followed a strong rally in regional markets earlier in the quarter. Why the sudden fall of Asian stock markets? The development unfolded after American technology giant Apple announced to jack up prices of some of its product lines by as much as 20 per cent. It raised prices across its iPad and MacBook, citing a rise in chip costs due to the recent global AI surge. Apple has also increased prices across TVs and HomePods. Additionally, the Asian market tanked as the South Korean government announced to tax unrealised gains on equities, which weighed on sentiment for AI and chip-related stocks. Following the announcement on Thursday, it triggered panic across markets, prompting investors to opt to reduce their exposures in AI and tech stocks. The Nasdaq Composite index in the US fell by 0.5 per cent overnight. Similarly, Apple's shares declined by more than 6 per cent. Competitor Dell declined 5.5 per cent, and the rest of the other big tech stocks in the US also ended lower. In Asia, shares of SK Hynix tumbled more than 8 per cent on Friday, while TSMC and Samsung recorded losses between 2 and 5 per cent. Also read: AI is making Xbox consoles more expensive. Here's why Microsoft raised prices Shortages of graphics and memory chips The decline comes as companies worldwide continue to grapple with rising costs and shortages of graphics and memory chips. The global semiconductor industry is largely dominated by major players such as SK Hynix, Samsung and Micron Technology. These manufacturers have increasingly prioritised the production of high-bandwidth memory (HBM) chips used in AI data centres because they generate higher profits. As a result, production capacity for chips commonly used in consumer electronics—including smartphones, personal computers, laptops and other devices—has been significantly reduced. The shift has contributed to a shortage of consumer-grade chips, driving up prices across the electronics sector. The situation, often referred to as the "RAMageddon" shortage, has prompted companies such as HP Inc., Dell Technologies and ASUS to increase prices. Shortly after Apple announced price hikes on Monday, gaming giant Xbox also revealed price increases of up to 25 per cent, marking its second such move within a year. Industry experts also underscored that Asian stock markets have come under intense pressure in recent months due to geopolitical tensions, soaring oil prices, and growing competition from China, along with concerns over artificial intelligence (AI) valuations. Reacting to the recent development in Asia's overall stock market, Harsha Vardhana VM, Founder and CEO of Atom Financial Services Group, said the current selloff is driven not only by a single factor but several challenges hitting the markets simultaneously. "Oil is probably the most straightforward piece. Once the US-Iran conflict pushed crude past $100 a barrel, the damage spread quickly and widely. South Korea, Japan, and India do not produce enough oil domestically to absorb that kind of price move without feeling it. Companies saw their costs go up. Households started pulling back on spending. And then the Federal Reserve, watching energy keep inflation elevated, found itself with fewer reasons to cut rates. A cautious Fed means a stronger dollar, and a stronger dollar is generally bad news for Asian currencies and the foreign investors who hold Asian assets. So what started as a geopolitical shock in the Middle East ended up sitting in the profit margins of a Korean steelmaker or an Indian airline. That is how connected these things are," Harsha Vardhana VM said. WATCH: https://www.wionews.com/videos/france-intercepts-suspected-russian-shadow-fleet-tanker-at-sea-1782474149108/embed AI rally loses momentum The technology sector, which powered most of the market of Asia gains in 2025, has also become a source of concern. South Korea and Taiwan benefited enormously from the booming demand for semiconductors and AI-related technologies. However, investors are now having several questions about whether stock prices accurately reflect company earnings. According to Vardhana, valuations in the semiconductor sector became increasingly disconnected from fundamentals. "The AI story is a bit more uncomfortable to tell, because it involves markets getting carried away with a genuinely real theme. South Korea and Taiwan had a spectacular 2025. The world wanted semiconductors, and these were the countries that made them. But at some point, the valuations stopped reflecting what companies were actually earning and started reflecting what investors hoped they would earn. When Broadcom came out in early June with AI chip revenue that fell short of expectations, it was not a disaster on its own. But it was enough to remind everyone that the earnings story had not quite caught up to the price story, and valuations were stretched too. In markets priced the way those were, that reminder tends to be expensive," he said. "Most of the coverage around the Asian selloff has focused on oil prices and chip stocks, and those are fair explanations as far as they go. But there is a bigger and more unsettling story sitting underneath all of it that is not getting the attention it deserves. For a long time, the Asian growth story rested on a fairly comfortable assumption. Countries like South Korea, Taiwan and Japan had built real advantages in industries the world depended on. What 2026 is starting to reveal is that some of that advantage was genuinely earned, and some of it was there simply because China had not yet decided to show up and compete for it," he added. China's growing competitive challenge Beyond short-term concerns over oil prices and technology stocks, Vardhana believes a more significant structural shift is taking place across Asia. For decades, countries such as South Korea, Taiwan and Japan built strong competitive advantages in sectors ranging from semiconductors and batteries to automobiles and shipbuilding. However, China is increasingly challenging that dominance. "What 2026 is starting to reveal is that some of that advantage was genuinely earned, and some of it was there simply because China had not yet decided to show up and compete for it. South Korea is the place where this is most stark. The country built its entire economic identity around a handful of industries. Semiconductors. Displays. Batteries. Automobiles. Shipbuilding. For decades, these were South Korean industries, and that was more or less taken for granted. Chinese firms have reportedly now overtaken South Korea in seven of those eight categories. Not nibbled away at the edges. Overtaken. And the money knew this before the headlines did. Foreign investors had been quietly selling out of Samsung for months before the big crash. The 12.2% single-day fall in the KOSPI in March was not a shock to anyone who had been paying attention. It was more like a conclusion that markets had been slowly writing for a while and finally signed off on," Vardhana said. He added that China's own equity markets have their problems; however, separate from the role of the Shanghai Composite on any given day, the competitive pressure that Chinese manufacturers are putting on the rest of the region is not a cyclical thing. Vardhana noted that it does not ease when sentiment improves or when a ceasefire stops, as it is a slow, structural reshaping of who makes what and at what price. That is the part of this story worth sitting with. What does it mean for India? India faces a different set of challenges. While the country has benefited from domestic growth drivers such as interest rate cuts, recovering consumption and government-led infrastructure spending, valuations remain demanding. Vardhana warned that Indian equities have little room for disappointment. "India is caught in the crossfire even though its problems are different in nature. The domestic fundamentals, rate cuts, a recovering consumption cycle, and a government capex push are still intact. But at a forward P/E of 23 times, there is no room for earnings to disappoint in the second half of the year. Clients with heavy exposure to global tech funds or IT-heavy portfolios should be looking at rebalancing toward domestic consumption and quality financials. Gold deserves a place in the allocation while oil and geopolitical risk remain elevated. And anyone waiting for FII flows to rescue Indian markets in the near term should probably plan around domestic conviction instead," he further said.

Industry experts highlighted that Asian stock markets have come under intense pressure in recent months due to geopolitical tensions, soaring oil prices, and growing competition from China, along with concerns over artificial intelligence (AI) valuations.&nbsp;

From South Korea to Japan: Why are Asian stock markets bleeding billions? Expert reveals shocking details

Asian stocks started Wednesday on a positive note, tracking gains in Wall Street overnight. The sentiment was driven by investors' optimism for a U.S.-China trade deal soon, similar to the Mexico and China tariff delay.

Asian stocks edge higher tracking Wall Street.

Asian stocks opened higher today, buoyed by gains on Wall Street.

Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes.

Hong Kong’s Hang Seng index futures were slightly up, reflecting cautious optimism in the region.

In the US, the S&amp;P 500 and NASDAQ composite closed at all-time highs on Monday.

The S&amp;P 500 gained 0.1 per cent and the NASDAQ rose 0.3 per cent, driven by easing inflation pressures and investor optimism about the Federal Reserve's potential policy easing.

However, the Dow Jones industrial average dipped 0.1 per cent, indicating some market caution.

Crude oil prices fell to a one-week low this morning. Brent futures settled around 85 per dollar barrel, as Hurricane Beryl disrupted US Gulf Coast refineries and ports.

Analysts noted that hedging activities ahead of the storm were unwound, contributing to the price drop.

Additionally, hopes for a Gaza ceasefire added to the downward pressure on oil prices.

Gold prices also fell by more than 1 per cent in the previous session due to profit-taking after a previous rally and a shift towards riskier equities.

The precious metal’s decline followed investor speculation about potential US Federal Reserve interest rate cuts in September.

This week, markets will be closely monitoring Federal Reserve Chair Jerome Powell’s testimony before Congress, key inflation data with the June consumer price index on Thursday, and the producer price index on Friday.

Earnings reports from PepsiCo, Delta Air Lines, Citigroup, and JPMorgan Chase will also be pivotal in gauging market sentiment and economic health.

Asian stocks opened higher today, buoyed by gains on Wall Street. Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes.

Asian stocks opened higher today, buoyed by gains on Wall Street. Japan’s Nikkei 225 rose 1 per cent, while South Korea’s Kospi climbed 0.3 per cent, driven by an increase in Samsung electronics despite ongoing union strikes. Hong Kong’s Hang Seng index futures were slightly up, reflecting cautious optimism in the region. In the US, the S&P 500 and NASDAQ composite closed at all-time highs on Monday. The S&P 500 gained 0.1 per cent and the NASDAQ rose 0.3 per cent, driven by easing inflation pressures and investor optimism about the Federal Reserve's potential policy easing. However, the Dow Jones industrial average dipped 0.1 per cent, indicating some market caution. Crude oil prices fell to a one-week low this morning. Brent futures settled around 85 per dollar barrel, as Hurricane Beryl disrupted US Gulf Coast refineries and ports. Analysts noted that hedging activities ahead of the storm were unwound, contributing to the price drop. Additionally, hopes for a Gaza ceasefire added to the downward pressure on oil prices. Gold prices also fell by more than 1 per cent in the previous session due to profit-taking after a previous rally and a shift towards riskier equities. The precious metal’s decline followed investor speculation about potential US Federal Reserve interest rate cuts in September. This week, markets will be closely monitoring Federal Reserve Chair Jerome Powell’s testimony before Congress, key inflation data with the June consumer price index on Thursday, and the producer price index on Friday. Earnings reports from PepsiCo, Delta Air Lines, Citigroup, and JPMorgan Chase will also be pivotal in gauging market sentiment and economic health.

Asian stocks rise on Wall Street optimism; Eyes on Fed & economic data

Let's shift our attention to how markets opened this morning. Asian stocks fell, weighed down by japanese and chinese shares. Meanwhile, the Yen weakened as markets awaited the outcome of the bank of Japan's two-day policy meeting.

Investors shrugg off wall street's bullish sentiment

Let's look at how markets opened on Wednesday...Asian equities struggled to find stable ground amid a lack of local drivers...On the other hand, the S&P 500 crept to another record high ahead of results from giant chipmaker Nvidia.

Asian stocks wobble after US hits new record high

Indian markets have been on a high since many days but today they have also registered some losses. Overall Asian shares were tense ahead of US payrolls data.

World Business Watch | Asian shares flat ahead of U.S. payrolls data

Against this backdrop, MSCI’s index of Asia-Pacific shares outside Japan rises 0.75% ahead of Monday’s European session.

Asian stocks start defensively | US Crude climbs 9 cents to $42.43 | WION

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade.

The Dow and the Nasdaq ended Friday with their biggest weekly drop since the start of the global financial crisis as investors took fright over a government shutdown in Washington, President Donald Trump's public feuding with the Federal Reserve and the US-China trade war returning to the forefront.

With Tokyo closed for a public holiday on Monday, Hong Kong and Shanghai set the tone with both exchanges seeing losses in early trading. Sydney was up slightly while Seoul was down.

Mnuchin spent much of the weekend in damage control mode after multiple media outlets reported that Trump had privately asked cabinet members if he has the authority to fire Fed Chairman Jerome Powell.

Last week, the central bank hiked rates, infuriating Trump who has ignored the traditional respect for the Fed's independence, calling it "crazy", "out of control" and a greater economic threat than China.

Mnuchin denied the reports of Trump seeking Powell's scalp, tweeting on Saturday that the president told him: "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so."

The following day, Mnuchin announced he had called senior executives from six of the largest American banks to discuss the market turmoil and received assurances.

"The banks all confirmed ample liquidity is available for lending to consumer and business markets," the Treasury said in a statement attached to a tweet from Mnuchin announcing the calls.

"We continue to see strong economic growth in the US economy with robust activity from consumers and business," Mnuchin was quoted in the statement as saying, adding that he would convene a call with the President's Working Group on financial markets later Monday.

'More panic and fear'&nbsp;

Analysts expressed both surprise and alarm at Mnuchin's Sunday statement, saying it might do the opposite of calming current jitters.

"Nothing says don't panic like saying 'I'm calling the plunge protection team tomorrow'," Michael O'Rourke, JonesTrading's chief market strategist, told Bloomberg News.

"I honestly think that's the type of event that's going to startle markets and create more panic and fear when it's meant to create confidence."

Last week's turmoil in Washington which included a government shutdown that appears likely to last until at least Thursday and the abrupt resignation of Defense Secretary Jim Mattis&nbsp;has spooked markets worldwide.

Japan's Nikkei hit a fresh 15-month low on Friday with its fourth consecutive day of losses, while European bourses were flat or rising slightly.

Oil inched higher in Asian trade after crude-producing nations said they expect prices will arrest their recent slide and rebalance early next year when a deal on new production cuts takes effect.

However, analysts said prospects for a global economic slowdown in the coming year&nbsp;which would weaken crude demand&nbsp;and rising US shale output are dampening sentiment and limiting any rebound from the current 15-month lows.

Prices have plunged by around 40 per cent from four-year peaks reached in early October on concerns about oversupply and weaker demand.

In foreign exchange markets, the yen rose 0.2 per cent to 111.02 per dollar, the euro was up 0.1 per cent at $1.1379 and the pound was at $1.2658, a 0.1 per cent rise.

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade.

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top US banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade. The Dow and the Nasdaq ended Friday with their biggest weekly drop since the start of the global financial crisis as investors took fright over a government shutdown in Washington, President Donald Trump's public feuding with the Federal Reserve and the US-China trade war returning to the forefront. With Tokyo closed for a public holiday on Monday, Hong Kong and Shanghai set the tone with both exchanges seeing losses in early trading. Sydney was up slightly while Seoul was down. Mnuchin spent much of the weekend in damage control mode after multiple media outlets reported that Trump had privately asked cabinet members if he has the authority to fire Fed Chairman Jerome Powell. Last week, the central bank hiked rates, infuriating Trump who has ignored the traditional respect for the Fed's independence, calling it "crazy", "out of control" and a greater economic threat than China. Mnuchin denied the reports of Trump seeking Powell's scalp, tweeting on Saturday that the president told him: "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so." The following day, Mnuchin announced he had called senior executives from six of the largest American banks to discuss the market turmoil and received assurances. "The banks all confirmed ample liquidity is available for lending to consumer and business markets," the Treasury said in a statement attached to a tweet from Mnuchin announcing the calls. "We continue to see strong economic growth in the US economy with robust activity from consumers and business," Mnuchin was quoted in the statement as saying, adding that he would convene a call with the President's Working Group on financial markets later Monday. 'More panic and fear' Analysts expressed both surprise and alarm at Mnuchin's Sunday statement, saying it might do the opposite of calming current jitters. "Nothing says don't panic like saying 'I'm calling the plunge protection team tomorrow'," Michael O'Rourke, JonesTrading's chief market strategist, told Bloomberg News. "I honestly think that's the type of event that's going to startle markets and create more panic and fear when it's meant to create confidence." Last week's turmoil in Washington which included a government shutdown that appears likely to last until at least Thursday and the abrupt resignation of Defense Secretary Jim Mattis has spooked markets worldwide. Japan's Nikkei hit a fresh 15-month low on Friday with its fourth consecutive day of losses, while European bourses were flat or rising slightly. Oil inched higher in Asian trade after crude-producing nations said they expect prices will arrest their recent slide and rebalance early next year when a deal on new production cuts takes effect. However, analysts said prospects for a global economic slowdown in the coming year which would weaken crude demand and rising US shale output are dampening sentiment and limiting any rebound from the current 15-month lows. Prices have plunged by around 40 per cent from four-year peaks reached in early October on concerns about oversupply and weaker demand. In foreign exchange markets, the yen rose 0.2 per cent to 111.02 per dollar, the euro was up 0.1 per cent at $1.1379 and the pound was at $1.2658, a 0.1 per cent rise.

Asia stocks fall despite Mnuchin's weekend triage

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week.

However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China.

A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth.

A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan.&nbsp;&nbsp; &nbsp;

"We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA.

The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019.

In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities.

"The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added.&nbsp; 
"And both events have a smoothing effect on risk sentiment."&nbsp;

In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent.

Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent.

Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty.

Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!"&nbsp;

That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts.

While a full-blown deal is some way off, the developments have provided some hope to dealers.

On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her

Brexit agreement, which a majority of lawmakers in Westminster oppose.

Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics.

However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing.

Asian markets mostly rose Monday as traders look ahead to a key meeting of the Federal Reserve, and a Chinese policy-setting conference this week. However, there is still caution on trading floors after Friday's sharp sell-off fuelled by concerns over China's economy, and despite a tweet from Donald Trump suggesting a trade deal could be hammered out between Washington and Beijing. While there are signs the world's top two economies are beginning to move towards a resolution in their bitter tariffs spat, there are increasing concerns about the global outlook following another dour set of indicators out of China. A string of below-par readings this year have highlighted a slowdown in the Asian giant and observers are forecasting leaders will unveil fresh measures to pep up the economy, which is on course for another year of relatively weak growth. A speech from President Xi Jinping to mark 40 years since China's economy began opening up will be closely followed Tuesday, and that is expected to be followed by a start of a conference setting out the country's 2019 economic plan. "We should expect a raft of stimulus measures from China policymakers in an attempt to stabilise the domestic economy," said Stephen Innes, head of Asia-Pacific trade at OANDA. The Fed will conclude its rate-setting policy meeting Wednesday and while expectations are for another hike in borrowing costs, comments from chairman Jerome Powell will be closely watched for an idea of its plans for 2019. In light of the China-US trade row and signs of weakness in the global economy, the bank has sounded a little more dovish in recent weeks, fuelling speculation it will slow down its pace of rate hikes -- which has provided some much-needed support to equities. "The upcoming (Fed) meeting and China's policy-setting meeting, have been the most actively discussed topics around the markets," Innes added. "And both events have a smoothing effect on risk sentiment." In early business, Hong rose 0.2 per cent, Shanghai edged up 0.1 per cent and Tokyo finished the morning 0.8 per cent higher while Sydney put on 0.5 per cent and Singapore jumped 1.3 per cent. Seoul added 0.2 per cent and Taipei gained 0.3 per cent but Wellington lost 0.3 per cent. Steve Goldman, fund manager at Kapstream Capital, told Bloomberg TV in Sydney that "we're going to see a lot of volatility" in the new year because of global uncertainty. Hopes that China and the US can reach a deal to end their trade war were given a boost by Trump Friday, when he tweeted: "China wants to make a big and very comprehensive deal. It could happen, and rather soon!" That came after China earlier in the day backed off fresh levies imposed this summer on US-made cars and auto parts. While a full-blown deal is some way off, the developments have provided some hope to dealers. On currency markets the pound remains bogged down around 20-month lows as Prime Minister Theresa May struggles to win concessions from EU leaders over her Brexit agreement, which a majority of lawmakers in Westminster oppose. Facing growing calls for another referendum to break the deadlock, May is expected to tell MPs that such a move will do "irreparable damage" to British politics. However, with her agreement all but dead in the water, there is a growing expectation Britain will leave the EU without a deal, which commentators warn could hammer the British economy.

Asian markets mostly up ahead of key meetings in China and US

Asian shares slipped on Monday and the dollar pulled away from last week&#39;s lows on expectations that a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming that the US central bank is gearing up to hike interest rates. 
 
Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak the following day. 
 
On Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the US economy&#39;s current strength in prepared remarks, saying the job market was close to full strength and still improving. 
 
&quot;We are close to our targets,&quot; Fischer said, though he did not directly address the timing of when the US central bank should next raise interest rates. 
 
Last week, New York Fed President William Dudley said a rate hike would be possible in September. Fischer&#39;s remarks fuelled that sense of anticipation, though interest rate futures contracts indicate that market is pricing in about 50/50 odds of an increase in December. 
 
&quot;Fischer&#39;s comments have raised some expectations in the market, particularly after Dudley&#39;s recent comments,&quot; said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank. 
 
MSCI&#39;s broadest index of Asia-Pacific shares outside Japan was down 0.7 per cent, after losing 0.3 per cent last week. Wall Street logged modest losses on Friday, ending nearly flat for the week. 
 
Japan&#39;s Nikkei rose 0.3 per cent, taking solace from a weaker currency ahead of the Jackson Hole meeting. It had skidded 2.2 percent last week, as the dollar dipped below 100 yen. 
 
&quot;Moves in the Japanese market will likely be dominated by the dollar-yen performances after the meeting,&quot; said Masashi Oda, general manager of the strategic investment department at Sumitomo Mitsui Trust Asset Management. &quot;The market could move either way, but most people want some kind of signal at this point.&quot; 
 
The dollar was up 0.6 percent against its Japanese counterpart at 100.84 yen, while the euro was down 0.4 percent at $1.1276, pulling away from last week&#39;s eight-week high of $1.1366. 
 
The dollar index, which tracks the greenback against a basket of six major rivals, added 0.4 per cent to 94.923, pulling away from last week&#39;s low of 94.077, which was its lowest since June 24. 
 
Crude oil futures dropped, giving back some of their recent gains that propelled oil into bull market territory, after technicals had it in a bear market earlier this month. 
 
Crude futures have risen almost $10 a barrel since early August on speculation that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries will agree next month to a production freeze deal with non-OPEC producers led by Russia. 
 
US crude fell 0.9 percent to $48.09 after gaining 9 per cent last week, rising for a second straight week. Brent crude was 1.3 per cent lower at $50.20 a barrel, after gaining 8 per cent last week, rising for a third week in a row. 
 
Gold fell on Monday to its lowest in over a week as the dollar strengthened. Spot gold was down 0.5 percent at $1,334.01 an ounce.

(Reuters) 
 
&nbsp;

Fed Vice Chairman Stanley Fischer gave an upbeat assessment of the US economy's current strength, saying the job market was close to full strength and still improving

Asian shares slipped on Monday and the dollar pulled away from last week's lows on expectations that a signal might emerge from a Federal Reserve gathering this week in Jackson Hole, Wyoming that the US central bank is gearing up to hike interest rates. Global central bankers will join the annual mountain retreat that opens on Thursday, with Fed Chair Janet Yellen due to speak the following day. On Sunday, Fed Vice Chairman Stanley Fischer gave a generally upbeat assessment of the US economy's current strength in prepared remarks, saying the job market was close to full strength and still improving. "We are close to our targets," Fischer said, though he did not directly address the timing of when the US central bank should next raise interest rates. Last week, New York Fed President William Dudley said a rate hike would be possible in September. Fischer's remarks fuelled that sense of anticipation, though interest rate futures contracts indicate that market is pricing in about 50/50 odds of an increase in December. "Fischer's comments have raised some expectations in the market, particularly after Dudley's recent comments," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.7 per cent, after losing 0.3 per cent last week. Wall Street logged modest losses on Friday, ending nearly flat for the week. Japan's Nikkei rose 0.3 per cent, taking solace from a weaker currency ahead of the Jackson Hole meeting. It had skidded 2.2 percent last week, as the dollar dipped below 100 yen. "Moves in the Japanese market will likely be dominated by the dollar-yen performances after the meeting," said Masashi Oda, general manager of the strategic investment department at Sumitomo Mitsui Trust Asset Management. "The market could move either way, but most people want some kind of signal at this point." The dollar was up 0.6 percent against its Japanese counterpart at 100.84 yen, while the euro was down 0.4 percent at $1.1276, pulling away from last week's eight-week high of $1.1366. The dollar index, which tracks the greenback against a basket of six major rivals, added 0.4 per cent to 94.923, pulling away from last week's low of 94.077, which was its lowest since June 24. Crude oil futures dropped, giving back some of their recent gains that propelled oil into bull market territory, after technicals had it in a bear market earlier this month. Crude futures have risen almost $10 a barrel since early August on speculation that Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries will agree next month to a production freeze deal with non-OPEC producers led by Russia. US crude fell 0.9 percent to $48.09 after gaining 9 per cent last week, rising for a second straight week. Brent crude was 1.3 per cent lower at $50.20 a barrel, after gaining 8 per cent last week, rising for a third week in a row. Gold fell on Monday to its lowest in over a week as the dollar strengthened. Spot gold was down 0.5 percent at $1,334.01 an ounce. (Reuters)

Asian shares dip, dollar rises as US Fed set to hike rates

<div style="text-align: justify;">Fears that&nbsp;Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. 
 
With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. 
 
They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one&nbsp;per cent drop in European share prices, after a new poll late on Friday gave the &quot;Leave&quot; camp a 10 point lead. 
 
Money markets have now abandoned expectations, high just weeks ago, that the US&nbsp;Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. 
 
&quot;We&#39;re in uncharted territory in front of the Brexit vote, and then there&#39;s also the Fed this week. So the wall of worry is quite high at the moment,&quot; said Zeg Choudhry, managing director at LONTRAD.&nbsp;&quot;All the banks are a little bit lower, and they&#39;re the ones which are likely to get hit. For the next two weeks, you&#39;ve got to be slightly mad if you&#39;ve not got your money in defensive stocks.&quot; 
 
The news out of China, global investors&#39; other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three&nbsp;per cent. 
 
By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain&#39;s FTSE 100 fell one&nbsp;per cent, Germany&#39;s DAX 0.9 per cent, and France&#39;s CAC 40 by 0.8 per cent. 
 
On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors&#39; first choice in times of financial and economic stress. 
 
Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency&#39;s strength this week. 
 
&quot;While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best,&quot; said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. 
 
&quot;The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing.&quot; 
 
The grim mood was visible on commodities markets, where crude oil futures added to Friday&#39;s three&nbsp;per cent drop after data showed the US&nbsp;oil drilling rig count rose for the second week in row. 
 
Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)</div>

Asian stock markets experience biggest drop in 4 months and European share prices fall by one per cent due to Britain's unassertive decision

Fears that Britain is on the verge of voting to leave the European Union next week, spread through global financial markets today, sending Asian and European shares sharply lower and the pound to an eight-week low. With the world economy looking shaky, and surprisingly weak, jobs figures last month suggesting even the United States is not ready for higher interest rates, concerns over the economic fallout of a Brexit have lurked in the background for weeks. They were at the heart on Monday of the biggest falls for Asian stock markets in four months, and a one per cent drop in European share prices, after a new poll late on Friday gave the "Leave" camp a 10 point lead. Money markets have now abandoned expectations, high just weeks ago, that the US Federal Reserve could raise official borrowing costs on Wednesday. Instead, the worry is that it could use language that quells expectations of a move this year at all. "We're in uncharted territory in front of the Brexit vote, and then there's also the Fed this week. So the wall of worry is quite high at the moment," said Zeg Choudhry, managing director at LONTRAD. "All the banks are a little bit lower, and they're the ones which are likely to get hit. For the next two weeks, you've got to be slightly mad if you've not got your money in defensive stocks." The news out of China, global investors' other big concern this year, was also poor, with data showing investment growth cooling. Stock markets in Tokyo, Hong Kong and Shanghai all fell by around three per cent. By comparison, the moves in Europe, where investors have been preparing for the British vote for months, were more subdued. Britain's FTSE 100 fell one per cent, Germany's DAX 0.9 per cent, and France's CAC 40 by 0.8 per cent. On currency markets, sterling fell another half a per cent against the Dollar after sinking by as much as 3 full cents in value on Friday. The biggest beneficiary of the global moves, however, was the Yen, traditionally investors' first choice in times of financial and economic stress. Further gains for the Japanese currency, which broke past long-term resistance around 106.50 Yen per Dollar and is up 14 per cent this year, puts more pressure on the Bank of Japan to act against the currency's strength this week. "While the pound is the worst-performing G10 currency versus the Dollar this year, the Yen is by far the best," said Derek Halpenny, European Head of Global Markets Research at Bank of Tokyo-Mitsubishi in London. "The continued surge of the Yen will lift expectations that the BOJ may surprise the markets and announce some additional monetary easing." The grim mood was visible on commodities markets, where crude oil futures added to Friday's three per cent drop after data showed the US oil drilling rig count rose for the second week in row. Gold, another perceived safe haven, hit four-week highs above $1,280 an ounce. (Reuters)

Brexit fear factor sends global stocks spinning